I encountered this question: "Can I blow up a car dealer for overly hard credit requests?" when I look at the search terms on my blog and I thought it was a good topic for further discussions.

First, what is the hard test?

There are two kinds of credit questions: hard and soft. a hard query is a loan question for borrowing. These types of investigations are generally taken over by things such as home, car or personal loan. Leasing and Tenant Screen Services also consider credit applications as hard tests

Soft testing is an information loan application. If you request your own credit on your own website, such as AnnualCreditReport.com, this is a soft request and does not deduct points from your score. In addition, creditors with whom you currently have a business relationship can raise soft questions to look into your account and evaluate your current creditworthiness. Bonds of pre-approved loans do not matter hard, but insurance and employment loan applications fall into this category because they do not offer credit.

How many points can be deducted from a Loan Issue?

o Any "hard" credit request (ie, the consumer has requested some credit claim that has led the creditor to check the credit rating or account number), which usually counts, usually only deducts five points from a person's score

Auto borrowing

We have been handling the issue of automatic loan and home loans since 2004. As most people like to buy home and car loans, credit instructors have recognized that each of them has had a negative impact on credit ratings due to multiple drawbacks that hurt the consumer's credit score and did not allow the consumer to get the best prices and conditions look.

So Fair Isaac changed a bit about the rules on Auto and Home Loan credit:

o The credit-grading model recognizes that many consumers buy the best interest rates before buying a car or a home, you can ask for debt. To compensate for this, multiple auto or mortgage examinations are considered as an examination over any 14-day period

o In the most recent formula used to calculate FICO scores, this 14-day period was extended to 45 days. This means that consumers can buy auto loans for up to 45 days without affecting their score. But the old 14-day rule can still be applied to lenders who do not use the new version.

o The latest FICO version for all three credit agencies – TransUnion, Equifax and Experian – online in 2004, lenders use months to adapt to processes to accommodate modified formulas – and some lenders never set it up.

o The FICO score does not take into account mortgages and automatic issues 30 days before the scoring. If you find the loan within 30 days, the tests will not affect your score while you are buying a rate. How to Avoid Multiple Hard Drive Exams

If you want to avoid duplicating multiple purchases while buying a car, you should spend funding for two weeks to fully focus on financing.

o Find Out What is your credit rating:

In order to buy a loan without having to accept multiple credit issues, you need to know what your credit rating is. This will also help you decide whether you are "banker-friendly" or if you have some difficulty in funding.

Based on your FICO score, you can get an idea of ​​the current range of scores or buy a 3-in-1 report with FICO for an easy-to-read report for just $ 39.95 so you will know exactly what your credit rating is.

o Bank has previously been approved:

Now that you know your credit ratings, call local banks in your area and ask, "What is a minimum credit rating that needs to be pre-approved for car loans? " [19659004] If you know that your credit ratings fit into the "Approval Guidelines", ask what your interest rates and terms, for example, how much you have to pay.

Once we have determined the creditor for the most favorable terms, go to the bank and apply it. Some banks have 800 phone credit centers or have an on-line application process so you do not have to go anywhere.

Once approved by your creditor, typically 30 days prior to approval will expire.

If you choose to choose this path, you will not get the best interest rate without creating as many credit requests as possible, but you will also know how much you have been authorized to obtain Auto Funding if it is not "Bankable"

If the value of the credit line is below what it has found to be "bankable," it has to find funding elsewhere. There are several ways to do this.

first You can go through an on-line vehicle financing network. These networks can access multiple creditors and their policies. They need to have their credibility to find out what their scores are, but then they have access to a number of car loan companies specializing in "lower than perfect credit" consumers. Once you have determined which creditor has the highest chance of approval, your application will be passed on.

2nd Go for a car purchase, and when you find the car you want, your dealer is pleased to submit your loan request to multiple lenders. Do not forget that if you choose to choose this route, you can count on 14 days of unlimited credit draw to 1 pull.

If you continue this month on a monthly basis, you will have about 5 points on your score

Answering the original question – "Can you attack a car maker for too hard tests?"

Civil liability in the context of non-compliance: "A person who receives a consumer report from a consumer by the reporting agency with false statements or deliberately, without an unacceptable aim, is responsible for the consumer's reporting agency for actual damages to the consumer data supply agency or for $ 1000 , whichever is greater. "

Read what it's worth! If you have requested financing from a car manufacturer, you will need to complete a credit application. Did the signed papers mean that they submit their application to multiple creditors?

If you did not give them permission to recover the loan, you might be able to sue for $ 1000, but in my opinion it goes so far that much more than it is worth. The simplest way to deal with the situation in your favor is to discuss the investigations with reporting creditors.

If creditors can not prove "permissible purpose" tests. If the creditors return and declare that they are licensed, they have the right to request them to certify the documentation. Once again, if they can not provide the documentation, credit rating agencies have to terminate the investigation.

After the query or multiple queries have been removed, your credit score needs to increase. It's a bit of a piece of work, but it's easier than trying to sue for $ 1,000.